DC Lite #328

1. Weekly Economic Index. "One of the big questions right now is whether the weak survey data that we are seeing is actually flowing through to shifts in economic activity. One of the best ways to examine that is by looking at a broad range of weekly economic data. The WEI suggests little shift."

2. Global leadership. "It’s a good time to seek alternatives to the US stock market ... EM will offer diversification. Especially countries that are cheaply valued, less vulnerable to foreign capital outflow, have low levels of debt, are underowned and whose currency is undervalued."

3. Earnings Revisions Index. US earnings have been downgraded every week so far in 2025.

4. Mag 7 earnings (I). "Mag 7 earnings revisions look to be stabilizing and potentially bottoming around 0%."

5. Credit spreads. "High-yield credit spreads are now back below their 2024 average."

ICYMI

• Mon 3/24 #327: "Futures Traders have accumulated a rare Long VIX position"

• Fri 3/21 #326: Goldman has CTAs modeled as buyers of US equities in all scenarios over the next week and month.

• Thu 3/20 #325: The percentage of 'Buy' ratings for S&P 500 stocks is on track to end the month at its highest since August 2022.

• Wed 3/19 #324: "Can stocks fall 10% this year? Maybe, but history would say something bad needs to happen"